Cashless policy to drive e-commerce revenue to N2.5tr
By Toba Agboola On Jul 6, 2015
The electronic commerce sector is expected to expand further to as much as $13 billion (N2.5 trillion) in value, Director-General, Lagos Chamber of Commerce and Industry, (LCCI) Mr Muda Yusuf has said.
He said this was expected as more Nigerians patronise online retail platforms following the Central Bank of Nigeria's (CBN's) cashlite policy and the Federal Government's National Broadband Policy (NBP) 2013-2018.
Yusuf said the increasing trend according to the NBP, stated that 80 per cent of the population is projected to enjoy mobile broadband access and 20 per cent fixed line access.
He attributed the growth to the country's population and the growth of internet and smartphone penetration.
He noted that the country's economic development will also have an impact on the growth of e-commerce, adding that more and more people, including retailers, branding partners and delivery companies, are attracted by online trade.
He said: "The e-commerce sector would reduce the cost of banking services (including cost of credit) and drive financial inclusion by providing more efficient transaction options and greater reach.
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"The electronic commerce sector would improve the effectiveness of monetary policy in managing inflation and driving economic growth as it boosted by an efficient and modern payment system, which is positively correlated with economic development, and is a key enabler for economic growth".
On the rising debt profile of the country, Yusuf said Nigeria is gradually walking back to the debt trap, adding that, adding that this is a very bad situation for the country.
"The implications are very ominous because what this means is that a huge proportion of the nation's resources will be used in servicing debt, which is a major cause for concern.
"Even if you look at the structure of Nigeria's annual budget, you will be shocked to see the proportion of the budget that is used for debt servicing.
"In the budget, which is a little above N4 trillion, over N900 billion is earmarked for debt payment. It means that almost 25 per cent of the budget is being set aside to service debt. You know what N900 billion can do for the growth of the nation.
He said it would have been a different thing if the debt had been incurred for particular projects such as power, rail lines, road networks and so on, which will ultimately help to cushion the effects of its repayment.
He said: "The productivity gains that will arise from such projects at the macro level will put the country's economy in a position that will enable it to take care of the debts. But the truth is that there is nothing to show for the debts that have mortgaged the economy."
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